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Gold/Mining/Energy : ASHTON MINING OF CANADA (ACA) -- Ignore unavailable to you. Want to Upgrade?

To: Michael Markham who wrote (5827)	7/28/1998 11:07:00 PM
From: Ann A List	Read Replies (2) \| Respond to of 7966

Wow, a lot happens when you turn you attention away for a few days! If there is a mine and the grades are good the old estimates of $30 stock will come out again. Michael, you're right, but I must like to stress that the grade thing is not as critical as you might think (see post 5748). Marginal costs are the key, and this is information that you're not going to see in a press release because its so nebulous. This is what the big shot investors analyze, because they understand there are two sides to an enterprise -- revenue and cost -- and that focusing on one is often ruinous. Simply put, you could take DMM costs and reduce the grade to 0.25c/t ($100/t), and K91 -- in my research -- would still be feasible, because its tonnage is equal to that of Diavik and Etaki. We're talking kimber-zilla here! The whole thing is like a giant speed-time-distance question, where you need two variables to determine the third. The K91 results we're going to get this weekend are important because they'll fuel our need to feel good about our investment decisions, but they'll only present one variable. Tonnage and value per tonne -- there's some info to get excited about. In the meantime, everybody 'chill'.